In the Senate of the United States,
May 13, 2008.
Amendment:
That the bill from the House of Representatives
(H.R. 3121) entitled An Act to restore the financial solvency of the
national flood insurance program and to provide for such program to make
available multiperil coverage for damage resulting from windstorms and floods,
and for other purposes.
, do pass with the following
Strike out all after the enacting clause and insert:
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Table of contents.
TITLE I—Flood Insurance Reform and Modernization
Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Definitions.
Sec. 104. Extension of National Flood Insurance Program.
Sec. 105. Availability of insurance for multifamily properties.
Sec. 106. Reform of premium rate structure.
Sec. 107. Mandatory coverage areas.
Sec. 108. Premium adjustment.
Sec. 109. State chartered financial institutions.
Sec. 110. Enforcement.
Sec. 111. Escrow of flood insurance payments.
Sec. 112. Borrowing authority debt forgiveness.
Sec. 113. Minimum deductibles for claims under the National Flood Insurance Program.
Sec. 114. Considerations in determining chargeable premium rates.
Sec. 115. Reserve fund.
Sec. 116. Repayment plan for borrowing authority.
Sec. 117. Payment of condominium claims.
Sec. 118. Technical Mapping Advisory Council.
Sec. 119. National Flood Mapping Program.
Sec. 120. Removal of limitation on State contributions for updating flood maps.
Sec. 121. Coordination.
Sec. 122. Interagency coordination study.
Sec. 123. Nonmandatory participation.
Sec. 124. Notice of flood insurance availability under RESPA.
Sec. 125. Testing of new flood proofing technologies.
Sec. 126. Participation in State disaster claims mediation programs.
Sec. 127. Reiteration of FEMA responsibilities under the 2004 Reform Act.
Sec. 128. Additional authority of FEMA to collect information on claims payments.
Sec. 129. Expense reimbursements of insurance companies.
Sec. 130. Extension of pilot program for mitigation of severe repetitive loss properties.
Sec. 131. Flood insurance advocate.
Sec. 132. Studies and Reports.
Sec. 133. Feasibility study on private reinsurance.
Sec. 134. Policy disclosures.
Sec. 135. Report on inclusion of building codes in floodplain management criteria.
TITLE II—Commission on Natural Catastrophe Risk Management and Insurance
Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Establishment.
Sec. 204. Membership.
Sec. 205. Duties of the Commission.
Sec. 206. Report.
Sec. 207. Powers of the Commission.
Sec. 208. Commission personnel matters.
Sec. 209. Termination.
Sec. 210. Authorization of appropriations.
TITLE III—Miscellaneous
Sec. 301. Big Sioux River and Skunk Creek, Sioux Falls, South Dakota.
Sec. 302. Suspension of petroleum acquisition for Strategic Petroleum Reserve.
Flood Insurance Reform and Modernization
Short title
This title may be cited
as the Flood Insurance Reform and
Modernization Act of 2008
.
Findings
Congress finds that—
the flood insurance claims resulting from the hurricane season of 2005 will likely exceed all previous claims paid by the National Flood Insurance Program;
in order to pay the legitimate claims of policyholders from the hurricane season of 2005, the Federal Emergency Management Agency has borrowed over $20,000,000,000 from the Treasury;
the interest alone on this debt, is almost $1,000,000,000 annually, and that the Federal Emergency Management Agency has indicated that it will be unable to pay back this debt;
the flood insurance program must be strengthened to ensure it can pay future claims;
while flood insurance is mandatory in the 100-year floodplain, substantial flooding occurs outside of existing special flood hazard areas;
recent events throughout
the country involving areas behind man-made structures, known as
residual risk
areas, have produced catastrophic losses;
although such man-made structures produce an added element of safety and therefore lessen the probability that a disaster will occur, they are nevertheless susceptible to catastrophic loss, even though such areas at one time were not included within the 100-year floodplain; and
voluntary participation in the National Flood Insurance Program has been minimal and many families residing outside the 100-year floodplain remain unaware of the potential risk to their lives and property.
Definitions
In general
In this title, the following definitions shall apply:
Director
The term Director means the Administrator of the Federal Emergency Management Agency.
National Flood Insurance Program
The term National Flood Insurance Program means the program established under the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.).
100-year floodplain
The term 100-year floodplain means that area which is subject to inundation from a flood having a 1 percent chance of being equaled or exceeded in any given year.
500-year floodplain
The term 500-year floodplain means that area which is subject to inundation from a flood having a 0.2 percent chance of being equaled or exceeded in any given year.
Write Your Own
The term Write Your Own means the cooperative undertaking between the insurance industry and the Flood Insurance Administration which allows participating property and casualty insurance companies to write and service standard flood insurance policies.
Common terminology
Except as otherwise provided in this title, any terms used in this title shall have the meaning given to such terms under section 1370 of the National Flood Insurance Act of 1968 (42 U.S.C. 4121).
Extension of National Flood Insurance Program
Section 1319 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4026), is amended by striking 2008
and
inserting 2013.
.
Availability of insurance for multifamily properties
Section 1305 of the National Flood Insurance Act of 1968 (42 U.S.C. 4012) is amended by adding at the end the following:
Availability of insurance for multifamily properties
In general
The Director shall make flood insurance available to cover residential properties of more than 4 units. Notwithstanding any other provision of law, the maximum coverage amount that the Director may make available under this subsection to such residential properties shall be equal to the coverage amount made available to commercial properties.
Rule of construction
Nothing in this subsection shall be construed to limit the ability of individuals residing in residential properties of more than 4 units to obtain insurance for the contents and personal articles located in such residences.
.
Reform of premium rate structure
To exclude certain properties from receiving subsidized premium rates
In general
Section 1307 of the National Flood Insurance Act of 1968 (42 U.S.C. 4014) is amended—
in subsection (a)—
in paragraph (2), by striking ;
and
and inserting a semicolon;
in paragraph (3), by
striking the period at the end and inserting ; and
; and
by adding at the end the following:
the exclusion of prospective insureds from purchasing flood insurance at rates less than those estimated under paragraph (1), as required by paragraph (2), for certain properties, including for—
any property which is not the primary residence of an individual;
any severe repetitive loss property, as defined in section 1361A(b);
any property that has incurred flood-related damage in which the cumulative amounts of payments under this title equaled or exceeded the fair market value of such property;
any business property; and
any property which on or after the date of enactment of the Flood Insurance Reform and Modernization Act of 2008 has experienced or sustained—
substantial damage exceeding 50 percent of the fair market value of such property; or
substantial improvement exceeding 30 percent of the fair market value of such property.
; and
by adding at the end the following:
No extension of subsidy to new policies or lapsed policies
The Director shall not provide flood insurance to prospective insureds at rates less than those estimated under subsection (a)(1), as required by paragraph (2) of that subsection, for—
any property not insured by the flood insurance program as of the date of enactment of the Flood Insurance Reform and Modernization Act of 2008;
any policy under the flood insurance program that has lapsed in coverage, as a result of the deliberate choice of the holder of such policy; and
any prospective insured who refuses to accept any offer for mitigation assistance by the Administrator (including an offer to relocate), including an offer of mitigation assistance—
following a major disaster, as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122); or
in connection with—
a repetitive loss property; or
a severe repetitive loss property, as that term is defined under section 1361A.
.
Effective date
The amendments made by paragraph (1) shall become effective 90 days after the date of the enactment of this title.
Increase in annual limitation on premium increases
Section 1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)) is amended—
by striking under this title for any
properties within any single
and inserting the following: “under this
title for any properties—
within any single
; and
by striking 10
percent
and inserting 15 percent
; and
by striking the period at the end and inserting the following: “; and
described in section 1307(a)(4) shall be increased by 25 percent each year, until the average risk premium rate for such properties is equal to the average of the risk premium rates for properties described under paragraph (1).
.
Mandatory coverage areas
Special flood hazard areas
Not later than 90 days after the date of enactment of this title, the Director shall issue final regulations establishing a revised definition of areas of special flood hazards for purposes of the National Flood Insurance Program.
Residual risk areas
The regulations required by subsection (a) shall—
include any area previously identified by the Director as an area having special flood hazards under section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a); and
require the expansion of areas of special flood hazards to include areas of residual risk, including areas that are located behind levees, dams, and other man-made structures.
Mandatory participation in national flood insurance program
In general
Any area described in subsection (b) shall be subject to the mandatory purchase requirements of sections 102 and 202 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a, 4106).
Limitation
The mandatory purchase requirement under paragraph (1) shall have no force or effect until the mapping of all residual risk areas in the United States that the Director determines essential in order to administer the National Flood Insurance Program, as required under section 119, are in the maintenance phase.
Accurate pricing
In carrying out the mandatory purchase requirement under paragraph (1), the Director shall ensure that the price of flood insurance policies in areas of residual risk accurately reflects the level of flood protection provided by any levee, dam, or other the man-made structure in such area.
Decertification
Upon decertification of any levee, dam, or man-made structure under the jurisdiction of the Army Corp of Engineers, the Corp shall immediately provide notice to the Director of the National Flood Insurance Program.
Premium adjustment
Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended by adding at the end the following:
Premium adjustment To reflect current risk of flood
Notwithstanding subsection (f), and upon completion of the updating of any flood insurance rate map under this Act, the Flood Disaster Protection Act of 1973, or the Flood Insurance Reform and Modernization Act of 2008, any property located in an area that is participating in the national flood insurance program shall have the risk premium rate charged for flood insurance on such property adjusted to accurately reflect the current risk of flood to such property, subject to any other provision of this Act. Any increase in the risk premium rate charged for flood insurance on any property that is covered by a flood insurance policy on the date of completion of such updating or remapping that is a result of such updating or remapping shall be phased in over a 2-year period at the rate of 50 percent per year.
Use of maps to establish rates for certain counties
In general
Until such time as the updating of flood insurance rate maps under section 19 of the Flood Modernization Act of 2007 is completed (as determined by the district engineer) for all areas located in the St. Louis District of the Mississippi Valley Division of the Corps of Engineers, the Director shall not—
adjust the chargeable premium rate for flood insurance under this title for any type or class of property located in an area in that District; and
require the purchase of flood insurance for any type or class of property located in an area in that District not subject to such purchase requirement prior to the updating of such national flood insurance program rate map.
Rule of construction
For purposes of this subsection, the term
area
does not include any area (or subdivision thereof) that has
chosen not to participate in the flood insurance program under this title as of
the date of enactment of this subsection.”.
State chartered financial institutions
Section 1305(c) of the National Flood Insurance Act of 1968 (42 U.S.C. 4012(c)) is amended—
in paragraph (1), by striking ;
and
and inserting a semicolon;
in paragraph (2), by
striking the period at the end and inserting ; and
; and
by adding at the end the following:
given satisfactory assurance that by December 31, 2008, lending institutions chartered by a State, and not insured by the Federal Deposit Insurance Corporation, shall be subject to regulations by that State that are consistent with the requirements of section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a).”.
Enforcement
Section 102(f)(5) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(5)) is amended—
in the first sentence, by striking
$350
and inserting $2,000
; and
by striking the second sentence.
Escrow of flood insurance payments
In general
Section 102(d) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)) is amended—
by amending paragraph (1) to read as follows:
Regulated lending institutions
Federal entities responsible for lending regulations
Each Federal entity for lending regulation (after consultation and coordination with the Federal Financial Institutions Examination Council) shall, by regulation, direct that any premiums and fees for flood insurance under the National Flood Insurance Act of 1968, on any property for which a loan has been made for acquisition or construction purposes, shall be paid to the mortgage lender, with the same frequency as payments on the loan are made, for the duration of the loan. Upon receipt of any premiums or fees, the lender shall deposit such premiums and fees in an escrow account on behalf of the borrower. Upon receipt of a notice from the Director or the provider of the flood insurance that insurance premiums are due, the remaining balance of an escrow account shall be paid to the provider of the flood insurance.
State entities responsible for lending regulations
In order to continue to participate in the flood insurance program, each State shall direct that its entity or agency with primary responsibility for the supervision of lending institutions in that State require that premiums and fees for flood insurance under the National Flood Insurance Act of 1968, on any property for which a loan has been made for acquisition or construction purposes shall be paid to the mortgage lender, with the same frequency as payments on the loan are made, for the duration of the loan. Upon receipt of any premiums or fees, the lender shall deposit such premiums and fees in an escrow account on behalf of the borrower. Upon receipt of a notice from such State entity or agency, the Director, or the provider of the flood insurance that insurance premiums are due, the remaining balance of an escrow account shall be paid to the provider of the flood insurance.
; and
by adding at the end the following:
Notice upon loan termination
Upon final payment of the mortgage, a regulated lending institution shall provide notice to the policyholder that insurance coverage may cease with such final payment. The regulated lending institution shall also provide direction as to how the homeowner may continue flood insurance coverage after the life of the loan.
.
Applicability
The amendment made by subsection (a)(1) shall apply to any mortgage outstanding or entered into on or after the expiration of the 2-year period beginning on the date of enactment of this title.
Borrowing authority debt forgiveness
In general
The Secretary of the Treasury relinquishes the right to any repayment of amounts due from the Director in connection with the exercise of the authority vested to the Director to borrow such sums under section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 4016), to the extent such borrowed sums were used to fund the payment of flood insurance claims under the National Flood Insurance Program for any damage to or loss of property resulting from the hurricanes of 2005.
Certification
The debt forgiveness described under subsection (a) shall only take effect if the Director certifies to the Secretary of Treasury that all authorized resources or funds available to the Director to operate the National Flood Insurance Program—
have been otherwise obligated to pay claims under the National Flood Insurance Program; and
are not otherwise available to make payments to the Secretary on any outstanding notes or obligations issued by the Director and held by the Secretary.
Decrease in borrowing authority
The first sentence of subsection (a) of section 1309 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by
striking ; except that, through September 30, 2008, clause (2) of this
sentence shall be applied by substituting
.$20,775,000,000
for
$1,500,000,000
Minimum deductibles for claims under the National Flood Insurance Program
Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019) is amended—
by striking The
Director is
and inserting the following:
In general
The Director is
; and
by adding at the end the following:
Minimum annual deductible
Pre-firm properties
For any structure which is covered by flood insurance under this title, and on which construction or substantial improvement occurred on or before December 31, 1974, or before the effective date of an initial flood insurance rate map published by the Director under section 1360 for the area in which such structure is located, the minimum annual deductible for damage to such structure shall be—
$1,500, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and
$2,000, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000.
Post-firm properties
For any structure which is covered by flood insurance under this title, and on which construction or substantial improvement occurred after December 31, 1974, or after the effective date of an initial flood insurance rate map published by the Director under section 1360 for the area in which such structure is located, the minimum annual deductible for damage to such structure shall be—
$750, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and
$1,000, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000.
.
Considerations in determining chargeable premium rates
Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(b)) is amended—
in subsection (a), by striking ,
after consultation with
and all that follows through by
regulation
and inserting prescribe, after providing
notice
;
in subsection (b)—
in paragraph (1), by striking the period at the end and inserting a semicolon;
in paragraph (2), by striking the comma at the end and inserting a semicolon;
in paragraph (3), by striking ,
and
and inserting a semicolon;
in paragraph (4), by striking the period
and inserting ; and
; and
by adding at the end the following:
adequate, on the basis of accepted actuarial principles, to cover the average historical loss year obligations incurred by the National Flood Insurance Fund.
; and
by adding at the end the following:
Rule of construction
For purposes of this section, the calculation of an
average historical loss year
—
includes catastrophic loss years; and
shall be computed in accordance with generally accepted actuarial principles.
.
Reserve fund
Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting after section 1310 the following:
Reserve Fund
Establishment of Reserve Fund
In carrying out the flood insurance program
authorized by this chapter, the Director shall establish in the Treasury of the
United States a National Flood Insurance Reserve Fund (in this section referred
to as the Reserve Fund
) which shall—
be an account separate from any other accounts or funds available to the Director; and
be available for meeting the expected future obligations of the flood insurance program.
Reserve ratio
Subject to the phase-in requirements under subsection (d), the Reserve Fund shall maintain a balance equal to—
1 percent of the sum of the total potential loss exposure of all outstanding flood insurance policies in force in the prior fiscal year; or
such higher percentage as the Director determines to be appropriate, taking into consideration any circumstance that may raise a significant risk of substantial future losses to the Reserve Fund.
Maintenance of reserve ratio
In general
The Director shall have the authority to establish, increase, or decrease the amount of aggregate annual insurance premiums to be collected for any fiscal year necessary—
to maintain the reserve ratio required under subsection (b); and
to achieve such reserve ratio, if the actual balance of such reserve is below the amount required under subsection (b).
Considerations
In exercising the authority granted under paragraph (1), the Director shall consider—
the expected operating expenses of the Reserve Fund;
the insurance loss expenditures under the flood insurance program;
any investment income generated under the flood insurance program; and
any other factor that the Director determines appropriate.
Limitations
In exercising the authority granted under paragraph (1), the Director shall be subject to all other provisions of this Act, including any provisions relating to chargeable premium rates or annual increases of such rates.
Phase-In requirements
The phase-in requirements under this subsection are as follows:
In general
Beginning in fiscal year 2008 and not ending until the fiscal year in which the ratio required under subsection (b) is achieved, in each such fiscal year the Director shall place in the Reserve Fund an amount equal to not less than 7.5 percent of the reserve ratio required under subsection (b).
Amount satisfied
As soon as the ratio required under subsection (b) is achieved, and except as provided in paragraph (3), the Director shall not be required to set aside any amounts for the Reserve Fund.
Exception
If at any time after the ratio required under subsection (b) is achieved, the Reserve Fund falls below the required ratio under subsection (b), the Director shall place in the Reserve Fund for that fiscal year an amount equal to not less than 7.5 percent of the reserve ratio required under subsection (b).
Limitation on reserve ratio
In any given fiscal year, if the Director determines that the reserve ratio required under subsection (b) cannot be achieved, the Director shall submit a report to Congress that—
describes and details the specific concerns of the Director regarding such consequences;
demonstrates how such consequences would harm the long-term financial soundness of the flood insurance program; and
indicates the maximum attainable reserve ratio for that particular fiscal year.
.
Repayment plan for borrowing authority
Section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 4016) is amended by adding at the end the following:
Any funds borrowed by the Director under the authority established in subsection (a) shall include a schedule for repayment of such amounts which shall be transmitted to the—
Secretary of the Treasury;
Committee on Banking, Housing, and Urban Affairs of the Senate; and
Committee on Financial Services of the House of Representatives.
In addition to the requirement under subsection (c), in connection with any funds borrowed by the Director under the authority established in subsection (a), the Director, beginning 6 months after the date on which such borrowed funds are issued, and continuing every 6 months thereafter until such borrowed funds are fully repaid, shall submit a report on the progress of such repayment to the—
Secretary of the Treasury;
Committee on Banking, Housing, and Urban Affairs of the Senate; and
Committee on Financial Services of the House of Representatives.
.
Payment of condominium claims
Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as amended by section 113, is further amended by adding at the end the following:
Payment of claims to condominium owners
The Director may not deny payment for any damage to or loss of property which is covered by flood insurance to condominium owners who purchased such flood insurance separate and apart from the flood insurance purchased by the condominium association in which such owner is a member, based, solely or in any part, on the flood insurance coverage of the condominium association or others on the overall property owned by the condominium association. Notwithstanding any regulations, rules, or restrictions established by the Director relating to appeals and filing deadlines, the Director shall ensure that the requirements of this subsection are met with respect to any claims for damages resulting from flooding in 2005 and 2006.
.
Technical Mapping Advisory Council
Establishment
There
is established a council to be known as the Technical Mapping Advisory Council
(in this section referred to as the Council
).
Membership
In general
The Council shall consist of the Director, or the designee thereof, and 12 additional members to be appointed by the Director or the designee of the Director, who shall be—
the Under Secretary of Commerce for Oceans and Atmosphere (or the designee thereof);
a member of a recognized professional surveying association or organization
a member of a recognized professional mapping association or organization;
a member of a recognized professional engineering association or organization;
a member of a recognized professional association or organization representing flood hazard determination firms;
a representative of the United States Geological Survey;
a representative of a recognized professional association or organization representing State geographic information;
a representative of State national flood insurance coordination offices;
a representative of the Corps of Engineers;
the Secretary of the Interior (or the designee thereof);
the Secretary of Agriculture (or the designee thereof);
a member of a recognized regional flood and storm water management organization;
a representative of a State agency that has entered into a cooperating technical partnership with the Director and has demonstrated the capability to produce flood insurance rate maps; and
a representative of a local government agency that has entered into a cooperating technical partnership with the Director and has demonstrated the capability to produce flood insurance rate maps.
Qualifications
Members of the Council shall be appointed based on their demonstrated knowledge and competence regarding surveying, cartography, remote sensing, geographic information systems, or the technical aspects of preparing and using flood insurance rate maps.
Duties
The Council shall—
recommend to the Director how to improve in a cost-effective manner the—
accuracy, general quality, ease of use, and distribution and dissemination of flood insurance rate maps and risk data; and
performance metrics and milestones required to effectively and efficiently map flood risk areas in the United States;
recommend to the Director mapping standards and guidelines for—
flood insurance rate maps; and
data accuracy, data quality, data currency, and data eligibility;
recommend to the Director how to maintain on an ongoing basis flood insurance rate maps and flood risk identification;
recommend procedures for delegating mapping activities to State and local mapping partners;
recommend to the Director and other Federal agencies participating in the Council—
methods for improving interagency and intergovernmental coordination on flood mapping and flood risk determination; and
a funding strategy to leverage and coordinate budgets and expenditures across Federal agencies; and
submit an annual report to the Director that contains—
a description of the activities of the Council;
an evaluation of the status and performance of flood insurance rate maps and mapping activities to revise and update flood insurance rate maps, as required under section 119; and
a summary of recommendations made by the Council to the Director.
Future conditions risk assessment and modeling report
In general
The Council shall consult with scientists and technical experts, other Federal agencies, States, and local communities to—
develop recommendations on how to—
ensure that flood insurance rate maps incorporate the best available climate science to assess flood risks; and
ensure that the Federal Emergency Management Agency uses the best available methodology to consider the impact of—
the rise in the sea level; and
future development on flood risk; and
not later than 1 year after the date of enactment of this title, prepare written recommendations in a future conditions risk assessment and modeling report and to submit such recommendations to the Director.
Responsibility of the Director
The Director, as part of the ongoing program to review and update National Flood Insurance Program rate maps under section 119, shall incorporate any future risk assessment submitted under paragraph (1)(B) in any such revision or update.
Chairperson
The
members of the Council shall elect 1 member to serve as the chairperson of the
Council (in this section referred to as the Chairperson
).
Coordination
To ensure that the Council's recommendations are consistent, to the maximum extent practicable, with national digital spatial data collection and management standards, the Chairperson shall consult with the Chairperson of the Federal Geographic Data Committee (established pursuant to OMB Circular A–16).
Compensation
Members of the Council shall receive no additional compensation by reason of their service on the Council.
Meetings and actions
In general
The Council shall meet not less frequently than twice each year at the request of the Chairperson or a majority of its members, and may take action by a vote of the majority of the members.
Initial meeting
The Director, or a person designated by the Director, shall request and coordinate the initial meeting of the Council.
Officers
The Chairperson may appoint officers to assist in carrying out the duties of the Council under subsection (c).
Staff
Staff of FEMA
Upon the request of the Chairperson, the Director may detail, on a nonreimbursable basis, personnel of the Federal Emergency Management Agency to assist the Council in carrying out its duties.
Staff of other Federal agencies
Upon request of the Chairperson, any other Federal agency that is a member of the Council may detail, on a non-reimbursable basis, personnel to assist the Council in carrying out its duties.
Powers
In carrying out this section, the Council may hold hearings, receive evidence and assistance, provide information, and conduct research, as it considers appropriate.
Report to Congress
The Director, on an annual basis, shall report to the Committee on Banking, Housing, and Urban Affairs of the Senate, the Committee on Financial Services of the House of Representatives, and the Office of Management and Budget on the—
recommendations made by the Council; and
actions taken by the Federal Emergency Management Agency to address such recommendations to improve flood insurance rate maps and flood risk data.
National Flood Mapping Program
Reviewing, updating, and maintaining maps
The Director, in coordination with the Technical Mapping Advisory Council established under section 118, shall establish an ongoing program under which the Director shall review, update, and maintain National Flood Insurance Program rate maps in accordance with this section.
Mapping
In general
In carrying out the program established under subsection (a), the Director shall—
identify, review, update, maintain, and publish National Flood Insurance Program rate maps with respect to—
all areas located within the 100-year floodplain;
all areas located within the 500-year floodplain;
areas of residual risk that have not previously been identified, including areas that are protected levees, dams, and other man-made structures; and
areas that could be inundated as a result of the failure of a levee, dam, or other man-made structure;
the level of protection provided by man-made structures.
establish or update flood-risk zone data in all such areas, and make estimates with respect to the rates of probable flood caused loss for the various flood risk zones for each such area; and
use, in identifying, reviewing, updating, maintaining, or publishing any National Flood Insurance Program rate map required under this section or under the National Flood Insurance Act of 1968, the most accurate topography and elevation data available.
Mapping elements
Each map updated under this section shall:
Ground elevation data
Assess the accuracy of current ground elevation data used for hydrologic and hydraulic modeling of flooding sources and mapping of the flood hazard and wherever necessary acquire new ground elevation data utilizing the most up-to-date geospatial technologies in accordance with the existing guidelines and specifications of the Federal Emergency Management Agency.
Data on a watershed basis
Develop National Flood Insurance Program flood data on a watershed basis—
to provide the most technically effective and efficient studies and hydrologic and hydraulic modeling; and
to eliminate, to the maximum extent possible, discrepancies in base flood elevations between adjacent political subdivisions.
Other inclusions
In updating maps under this section, the Director shall include—
any relevant information on coastal inundation from—
an applicable inundation map of the Corps of Engineers; and
data of the National Oceanic and Atmospheric Administration relating to storm surge modeling;
any relevant information of the United States Geological Survey on stream flows, watershed characteristics, and topography that is useful in the identification of flood hazard areas, as determined by the Director;
any relevant information on land subsidence, coastal erosion areas, and other floor-related hazards;
any relevant information or data of the National Oceanic and Atmospheric Administration and the United States Geological Survey relating to the best available climate science and the potential for future inundation from sea level rise, increased precipitation, and increased intensity of hurricanes due to global warming; and
any other relevant information as may be recommended by the Technical Mapping Advisory Committee.
Standards
In updating and maintaining maps under this section, the Director shall—
establish standards to—
ensure that maps are adequate for—
flood risk determinations; and
use by State and local governments in managing development to reduce the risk of flooding; and
facilitate identification and use of consistent methods of data collection and analysis by the Director, in conjunction with State and local governments, in developing maps for communities with similar flood risks, as determined by the Director; and
publish maps in a format that is—
digital geospatial data compliant;
compliant with the open publishing and data exchange standards established by the Open Geospatial Consortium; and
compliant with the North American Vertical Datum of 1998 for New Hydrologic and Hydraulic Engineering.
Communication and outreach
In general
The Director shall—
work to enhance communication and outreach to States, local communities, and property owners about the effects of—
any potential changes to National Flood Insurance Program rate maps that may result from the mapping program required under this section; and
that any such changes may have on flood insurance purchase requirements; and
engage with local communities to enhance communication and outreach to the residents of such communities on the matters described under subparagraph (A).
Required activities
The communication and outreach activities required under paragraph (1) shall include—
notifying property owners when their properties become included in, or when they are excluded from, an area having special flood hazards and the effect of such inclusion or exclusion on the applicability of the mandatory flood insurance purchase requirement under section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) to such properties;
educating property owners regarding the flood risk and reduction of this risk in their community, including the continued flood risks to areas that are no longer subject to the flood insurance mandatory purchase requirement;
educating property owners regarding the benefits and costs of maintaining or acquiring flood insurance, including, where applicable, lower-cost preferred risk policies under the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.) for such properties and the contents of such properties;
educating property owners about flood map revisions and the process available such owners to appeal proposed changes in flood elevations through their community; and
encouraging property owners to maintain or acquire flood insurance coverage.
Authorization of appropriations
There is authorized to be appropriated to the Director to carry out this section $400,000,000 for each of fiscal years 2008 through 2013.
Removal of limitation on State contributions for updating flood maps
Section 1360(f)(2) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4101(f)(2)) is amended by striking ,
but which may not exceed 50 percent of the cost of carrying out the requested
revision or update
.
Coordination
Interagency budget crosscut report
In general
The Secretary of Homeland Security, the Director, the Director of the Office of Management and Budget, and the heads of each Federal department or agency carrying out activities under sections 118 and 119 shall work together to ensure that flood risk determination data and geospatial data are shared among Federal agencies in order to coordinate the efforts of the Nation to reduce its vulnerability to flooding hazards.
Report
Not later than 30 days after the submission of the budget of the United States Government by the President to Congress, the Director of the Office of Management and Budget, in coordination with the Federal Emergency Management Agency, the United States Geological Survey, the National Oceanic and Atmospheric Administration, the Corps of Engineers, and other Federal agencies, as appropriate, shall submit to the appropriate authorizing and appropriating committees of the Senate and the House of Representatives a financial report, certified by the Secretary or head of each such agency, an interagency budget crosscut report that displays the budget proposed for each of the Federal agencies working on flood risk determination data and digital elevation models, including any planned interagency or intraagency transfers.
Duties of the Director
In carrying out sections 118 and 119, the Director shall—
participate, pursuant to section 216 of Public Law 107–347 (116 Stat. 2945), in the establishment of such standards and common protocols as are necessary to assure the interoperability of geospatial data for all users of such information;
coordinate with, seek assistance and cooperation of, and provide liaison to the Federal Geographic Data Committee pursuant to Office of Management and Budget Circular A–16 and Executive Order 12906 for the implementation of and compliance with such standards;
integrate with, leverage, and coordinate funding of, to the maximum extent practicable, the current flood mapping activities of each unit of State and local government;
integrate with, leverage, and coordinate, to the maximum extent practicable, the current geospatial activities of other Federal agencies and units of State and local government; and
develop a funding strategy to leverage and coordinate budgets and expenditures, and to establish joint funding mechanisms with other Federal agencies and units of State and local government to share the collection and utilization of geospatial data among all governmental users.
Interagency coordination study
In general
The Director shall enter into a contract with the National Academy of Public Administration to conduct a study on how the Federal Emergency Management Agency—
should improve interagency and intergovernmental coordination on flood mapping, including a funding strategy to leverage and coordinate budgets and expenditures; and
can establish joint funding mechanisms with other Federal agencies and units of State and local government to share the collection and utilization of data among all governmental users.
Timing
Not later than 180 days after the date of enactment of this title, the National Academy of Public Administration shall report the findings of the study required under subsection (a) to the—
Committee on Banking, Housing, and Urban Affairs of the Senate;
Committee on Financial Services of the House of Representatives;
Committee on Appropriations of the Senate; and
Committee on Appropriations of the House of Representatives.
Nonmandatory participation
Nonmandatory participation in national flood insurance program for 500-year floodplain
Any area located within the 500-year floodplain shall not be subject to the mandatory purchase requirements of sections 102 or 202 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a, 4106).
Notice
By Director
In carrying out the National Flood Insurance Program, the Director shall provide notice to any community located in an area within the 500-year floodplain.
Timing of notice
The notice required under paragraph (1) shall be made not later than 6 months after the date of completion of the initial mapping of the 500-year floodplain, as required under section 118.
Lender required notice
Regulated lending institutions
Each Federal or State entity for lending regulation (after consultation and coordination with the Federal Financial Institutions Examination Council) shall, by regulation, require regulated lending institutions, as a condition of making, increasing, extending, or renewing any loan secured by property located in an area within the 500-year floodplain, to notify the purchaser or lessee (or obtain satisfactory assurances that the seller or lessor has notified the purchaser or lessee) and the servicer of the loan that such property is located in an area within the 500-year floodplain, in a manner that is consistent with and substantially identical to the notice required under section 1364(a)(1) of the National Flood Insurance Act of 1968 (42 U.S.C. 4104a(a)(1)).
Federal or State agency lenders
Each Federal or State agency lender shall, by regulation, require notification in the same manner as provided under subparagraph (A) with respect to any loan that is made by a Federal or State agency lender and secured by property located in an area within the 500-year floodplain.
Penalty for noncompliance
Any regulated lending institution or Federal or State agency lender that fails to comply with the notice requirements established by this paragraph shall be subject to the penalties prescribed under section 102(f)(5) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(5)).
Notice of flood insurance availability under RESPA
Section 5(b) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2604(b)) is amended—
in paragraph (4), by striking ;
and
and inserting a semicolon;
in paragraph (5), by striking the period
and inserting ; and
; and
by adding at the end the following:
an explanation of flood insurance and the availability of flood insurance under the National Flood Insurance Program, whether or not the real estate is located in an area having special flood hazards.
.
Testing of new floodproofing technologies
Permissible testing
A temporary residential structure built for the purpose of testing a new flood proofing technology, as described in subsection (b), in any State or community that receives mitigation assistance under section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) may not be construed to be in violation of any flood risk mitigation plan developed by that State or community and approved by the Director of the Federal Emergency Management Agency.
Conditions on testing
Testing permitted under subsection (a) shall—
be performed on an uninhabited residential structure;
require dismantling of the structure at the conclusion of such testing; and
require that all costs associated with such testing and dismantling be covered by the individual or entity conducting the testing, or on whose behalf the testing is conducted.
Rule of construction
Nothing in this section shall be construed to alter, limit, or extend the availability of flood insurance to any structure that may employ, utilize, or apply any technology tested under subsection (b).
Participation in State disaster claims mediation programs
Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting after section 1313 the following:
Participation in State disaster claims mediation programs
Requirement to participate
In the case of the occurrence of a major disaster, as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122) that may have resulted in flood damage under the flood insurance program established under this chapter and other personal lines residential property insurance coverage offered by a State regulated insurer, upon request made by the insurance commissioner of a State (or such other official responsible for regulating the business of insurance in the State) for the participation of representatives of the Director in a program sponsored by such State for nonbinding mediation of insurance claims resulting from a major disaster, the Director shall cause representatives of the flood insurance program to participate in such a State program where claims under the flood insurance program are involved to expedite settlement of flood damage claims resulting from such disaster.
Extent of participation
In satisfying the requirements of subsection (a), the Director shall require that each representative of the Director—
be certified for purposes of the flood insurance program to settle claims against such program resulting from such disaster in amounts up to the limits of policies under such program;
attend State-sponsored mediation meetings regarding flood insurance claims resulting from such disaster at such times and places as may be arranged by the State;
participate in good faith negotiations toward the settlement of such claims with policyholders of coverage made available under the flood insurance program; and
finalize the settlement of such claims on behalf of the flood insurance program with such policyholders.
Coordination
Representatives of the Director shall at all times coordinate their activities with insurance officials of the State and representatives of insurers for the purposes of consolidating and expediting settlement of claims under the national flood insurance program resulting from such disaster.
Qualifications of Mediators
Each State mediator participating in State-sponsored mediation under this section shall be—
a member in good standing of the State bar in the State in which the mediation is to occur with at least 2 years of practical experience; and
an active member of such bar for at least 1 year prior to the year in which such mediator's participation is sought; or
a retired trial judge from any United States jurisdiction who was a member in good standing of the bar in the State in which the judge presided for at least 5 years prior to the year in which such mediator's participation is sought.
Mediation proceedings and documents privileged
As a condition of participation, all statements made and documents produced pursuant to State-sponsored mediation involving representatives of the Director shall be deemed privileged and confidential settlement negotiations made in anticipation of litigation.
Liability, rights, or obligations not affected
Participation in State-sponsored mediation, as described in this section does not—
affect or expand the liability of any party in contract or in tort; or
affect the rights or obligations of the parties, as established—
in any regulation issued by the Director, including any regulation relating to a standard flood insurance policy;
under this Act; and
under any other provision of Federal law.
Exclusive federal jurisdiction
Participation in State-sponsored mediation shall not alter, change, or modify the original exclusive jurisdiction of United States courts, as set forth in this Act.
Cost limitation
Nothing in this section shall be construed to require the Director or a representative of the Director to pay additional mediation fees relating to flood insurance claims associated with a State-sponsored mediation program in which such representative of the Director participates.
Exception
In the case of the occurrence of a major disaster that results in flood damage claims under the national flood insurance program and that does not result in any loss covered by a personal lines residential property insurance policy—
this section shall not apply; and
the provisions of the standard flood insurance policy under the national flood insurance program and the appeals process established under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) and the regulations issued pursuant to such section shall apply exclusively.
Representatives of the Director
For purposes of this section, the term representatives of the Director means representatives of the national flood insurance program who participate in the appeals process established under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note).
.
Reiteration of FEMA responsibilities under the 2004 Reform Act
Minimum training and education requirements
The Director shall continue to work with the insurance industry, State insurance regulators, and other interested parties to implement the minimum training and education standards for all insurance agents who sell flood insurance policies, as such standards were determined by the Director in the notice published in the Federal Register on September 1, 2005 (70 Fed. Reg. 52117) pursuant to section 207 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note).
Report on the overall implementation of the Reform Act of 2004
Not later than 3 months after the date of the enactment of this title, the Director shall submit a report to Congress—
describing the implementation of each provision of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (Public Law 108–264; 118 Stat. 712);
identifying each regulation, order, notice, and other material issued by the Director in implementing each provision of that Act;
explaining any statutory or implied deadlines that have not been met; and
providing an estimate of when the requirements of such missed deadlines will be fulfilled.
Additional authority of FEMA to collect information on claims payments
In general
The Director shall collect, from property and casualty insurance companies that are authorized by the Director to participate in the Write Your Own program any information and data needed to determine the accuracy of the resolution of flood claims filed on any property insured with a standard flood insurance policy obtained under the program that was subject to a flood.
Type of information To be collected
The information and data to be collected under subsection (a) may include—
any adjuster estimates made as a result of flood damage, and if the insurance company also insures the property for wind damage—
any adjuster estimates for both wind and flood damage;
the amount paid to the property owner for wind and flood claims;
the total amount paid to the policyholder for damages as a result of the event that caused the flooding and other losses;
any amounts paid to the policyholder by the insurance company for damages to the insured property other than flood damages; and
the total amount paid to the policyholder by the insurance company for all damages incurred to the insured property as a result of the flood.
Expense reimbursements of insurance companies
Submission of biennial reports
To the Director
Not later than 20 days after the date of enactment of this title, each property and casualty insurance company that is authorized by the Director to participate in the Write Your Own program shall submit to the Director any biennial report prepared in the prior 5 years by such company.
To GAO
Not later than 10 days after the submission of the biennial reports under paragraph (1), the Director shall submit all such reports to the Comptroller General of the United States.
Notice to Congress of failure to comply
The Director shall notify and report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on any property and casualty insurance company participating in the Write Your Own program that failed to submit its biennial reports as required under paragraph (1).
Failure to comply
A property and casualty insurance company that is authorized by the Director to participate in the Write Your Own program which fails to comply with the reporting requirement under this subsection or the requirement under section 62.23(j)(1) of title 44, Code of Federal Regulations (relating to biennial audit of the flood insurance financial statements) shall be subject to a civil penalty in an amount equal to $1,000 per day for each day that the company remains in noncompliance with either such requirement.
FEMA rulemaking on expenses of WYO program
Not later than 180 days after the date of enactment of this title, the Director shall conduct a rulemaking proceeding to devise a data collection methodology to allow the Federal Emergency Management Agency to collect consistent information on the expenses (including the operating and administrative expenses for adjustment of claims) of property and casualty insurance companies participating in the Write Your Own program for selling, writing, and servicing, standard flood insurance policies.
Submission of expense reports
Not later than 60 days after the effective date of the final rule established pursuant to subsection (b), each property and casualty insurance company participating in the Write Your Own program shall submit a report to the Director that details for the prior 5 years the expense levels of each such company for selling, writing, and servicing standard flood insurance policies based on the methodologies established under subsection (b).
FEMA rulemaking on reimbursement of expenses under the WYO program
Not later than 15 months after the date of enactment of this title, the Director shall conduct a rulemaking proceeding to formulate revised expense reimbursements to property and casualty insurance companies participating in the Write Your Own program for their expenses (including their operating and administrative expenses for adjustment of claims) in selling, writing, and servicing standard flood insurance policies, including how such companies shall be reimbursed in both catastrophic and non-catastrophic years. Such reimbursements shall be structured to ensure reimbursements track the actual expenses, including standard business costs and operating expenses, of such companies as close as practicably possible.
Report of the Director
Not later than 60 days after the effective date of any final rule established pursuant to subsection (b) or subsection (d), the Director shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report containing—
the specific rationale and purposes of such rule;
the reasons for the adoption of the policies contained in such rule; and
the degree to which such rule accurately represents the true operating costs and expenses of property and casualty insurance companies participating in the Write Your Own program.
GAO study and report on expenses of WYO program
Study
Not later than 180 days after the effective date of the final rule established pursuant to subsection (d), the Comptroller General of the United States shall—
conduct a study on the efficacy, adequacy, and sufficiency of the final rules established pursuant to subsections (b) and (d); and
report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the findings of the study conducted under subparagraph (A).
GAO authority
In conducting the study and report required under paragraph (1), the Comptroller General—
may use any previous findings, studies, or reports that the Comptroller General previously completed on the Write Your Own program;
shall determine if—
the final rules established pursuant to subsections (b) and (d) allow the Federal Emergency Management Agency to access adequate information regarding the actual expenses of property and casualty insurance companies participating in the Write Your Own program; and
the actual reimbursements paid out under the final rule established in subsection (d) accurately reflect the expenses reported by property and casualty insurance companies participating in the Write Your Own program, including the standard business costs and operating expenses of such companies; and
shall analyze the effect of such rules on the level of participation of property and casualty insurers in the Write Your Own program.
Extension of pilot program for mitigation of severe repetitive loss properties
In general
Section 1361A of the National Flood Insurance Act of 1968 (42 U.S.C. 4102a) is amended—
in subsection (k)(1)—
in the first sentence, by
striking in each of fiscal years 2005, 2006, 2007, 2008, and
2009
and inserting in each fiscal year through fiscal year
2013
; and
by adding at the end the
following new sentence: For fiscal years 2008 through the 2013, the
total amount that the Director may use to provide assistance under this section
shall not exceed $240,000,000.
; and
by striking subsection (l).
Report to Congress on implementation status
Not later than 6 months after the date of enactment of this title, the Director shall report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the status of the implementation of the pilot program for severe repetitive loss properties authorized under section 1361A of the National Flood Insurance Act of 1968 (42 U.S.C. 4102a).
Rulemaking
No later than 90 days after the date of enactment of this title, the Director shall issue final rules to carry out the severe repetitive loss pilot program authorized under section 1361A of the National Flood Insurance Act of 1968 (42 U.S.C. 4102a).
Flood insurance advocate
Chapter II of the National Flood Insurance Act of 1968 is amended by inserting after section 1330 (42 U.S.C. 4041) the following new section:
Office of the flood insurance advocate
Establishment of position
In general
There shall be in the Federal Emergency Management Agency an Office of the Flood Insurance Advocate which shall be headed by the National Flood Insurance Advocate. The National Flood Insurance Advocate shall—
to the extent amounts are provided pursuant to subsection (n), be compensated at the same rate as the highest rate of basic pay established for the Senior Executive Service under section 5382 of title 5, United States Code, or, if the Director so determines, at a rate fixed under section 9503 of such title;
be appointed by the Director without regard to political affiliation;
report to and be under the general supervision of the Director, but shall not report to, or be subject to supervision by, any other officer of the Federal Emergency Management Agency; and
consult with the Assistant Administrator for Mitigation or any successor thereto, but shall not report to, or be subject to the general supervision by, the Assistant Administrator for Mitigation or any successor thereto.
Qualifications
An individual appointed under paragraph (1)(B) shall have a background in customer service, or experience representing insureds, as well as experience in investigations or audits.
Restriction on employment
An individual may be appointed as the National Flood Insurance Advocate only if such individual was not an officer or employee of the Federal Emergency Management Agency with duties relating to the national flood insurance program during the 2-year period ending with such appointment and such individual agrees not to accept any employment with the Federal Emergency Management Agency for at least 2 years after ceasing to be the National Flood Insurance Advocate. Service as an employee of the National Flood Insurance Advocate shall not be taken into account in applying this paragraph.
Staff
To the extent amounts are provided pursuant to subsection (n), the National Flood Insurance Advocate may employ such personnel as may be necessary to carry out the duties of the Office.
Independence
The Director shall not prevent or prohibit the National Flood Insurance Advocate from initiating, carrying out, or completing any audit or investigation, or from issuing any subpoena or summons during the course of any audit or investigation.
Removal
The President and the Director shall have the power to remove, discharge, or dismiss the National Flood Insurance Advocate. Not later than 15 days after the removal, discharge, or dismissal of the Advocate, the President or the Director shall report to the Committee on Banking of the Senate and the Committee on Financial Services of the House of Representatives on the basis for such removal, discharge, or dismissal.
Functions of Office
It shall be the function of the Office of the Flood Insurance Advocate to—
assist injure under the national flood insurance program in resolving problems with the Federal Emergency Management Agency relating to such program;
identify areas in which such injure have problems in dealings with the Federal Emergency Management Agency relating to such program;
propose changes in the administrative practices of the Federal Emergency Management Agency to mitigate problems identified under paragraph (2);
identify potential legislative, administrative, or regulatory changes which may be appropriate to mitigate such problems;
conduct, supervise, and coordinate—
systematic and random audits and investigations of insurance companies and associated entities that sell or offer policies under the National Flood Insurance Program to determine whether such insurance companies or associated entities are allocating only flood losses under such insurance policies to the National Flood Insurance Program; and
audits and investigations to determine if an insurance company or associated entity described under subparagraph (A) is negotiating on behalf of the National Flood Insurance Program with third parties in good faith;
conduct, supervise, and coordinate investigations into the operations of the national flood insurance program for the purpose of—
promoting economy and efficiency in the administration of such program;
preventing and detecting fraud and abuse in the program; and
identifying, and referring to the Attorney General for prosecution, any participant in such fraud or abuse; and
identify and investigate conflicts of interest that undermine the economy and efficiency of the national flood insurance program.
Authority of the national flood insurance advocate
The National Flood Insurance Advocate may—
have access to all records, reports, audits, reviews, documents, papers, recommendations, or other material available to the Director which relate to administration or operation of the national flood insurance program with respect to which the National Flood Insurance Advocate has responsibilities under this section, including information submitted pursuant to Section 128 of this Act;
undertake such investigations and reports relating to the administration or operation of the national flood insurance program as are, in the judgment of the National Flood Insurance Advocate, necessary or desirable;
request such information or assistance as may be necessary for carrying out the duties and responsibilities provided by this section from any Federal, State, or local governmental agency or unit thereof;
request the production of information, documents, reports, answers, records (including phone records), accounts, papers, emails, hard drives, backup tapes, software, audio or visual aides, and any other data and documentary evidence necessary in the performance of the functions assigned to the National Flood Insurance Advocate by this section;
request the testimony of any person in the employ of any insurance company or associated entity participating in the National Flood Insurance Program, described under subsection (b)(5)(A), or any successor to such company or entity, including any member of the board of such company or entity, any trustee of such company or entity, any partner in such company or entity, or any agent or representative of such company or entity;
select, appoint, and employ such officers and employees as may be necessary for carrying out the functions, powers, and duties of the Office subject to the provisions of title 5, United States Code, governing appointments in the competitive service, and the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates;
obtain services as authorized by section 3109 of title 5, United States Code, at daily rates not to exceed the equivalent rate prescribed for the rate of basic pay for a position at level IV of the Executive Schedule; and
to the extent and in such amounts as may be provided in advance by appropriations Acts, enter into contracts and other arrangements for audits, studies, analyses, and other services with public agencies and with private persons, and to make such payments as may be necessary to carry out the provisions of this section.
Additional duties of the NFIA
The National Flood Insurance Advocate shall—
monitor the coverage and geographic allocation of regional offices of flood insurance advocates;
develop guidance to be distributed to all Federal Emergency Management Agency officers and employees having duties with respect to the national flood insurance program, outlining the criteria for referral of inquiries by insureds under such program to regional offices of flood insurance advocates;
ensure that the local telephone number for each regional office of the flood insurance advocate is published and available to such insureds served by the office; and
establish temporary State or local offices where necessary to meet the needs of qualified insureds following a flood event.
Other responsibilities
Additional requirements relating to certain audits
Prior to conducting any audit or investigation relating to the allocation of flood losses under subsection (b)(5)(A), the National Flood Insurance Advocate may—
consult with appropriate subject-matter experts to identify the data necessary to determine whether flood claims paid by insurance companies or associated entities on behalf the national flood insurance program reflect damages caused by flooding;
collect or compile the data identified in subparagraph (A), utilizing existing data sources to the maximum extent practicable; and
establish policies, procedures, and guidelines for application of such data in all audits and investigations authorized under this section.
Annual reports
Activities
Not later than December 31 of each calendar year, the National Flood Insurance Advocate shall report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the activities of the Office of the Flood Insurance Advocate during the fiscal year ending during such calendar year. Any such report shall contain a full and substantive analysis of such activities, in addition to statistical information, and shall—
identify the initiatives the Office of the Flood Insurance Advocate has taken on improving services for insureds under the national flood insurance program and responsiveness of the Federal Emergency Management Agency with respect to such initiatives;
describe the nature of recommendations made to the Director under subsection (i);
contain a summary of the most serious problems encountered by such insureds, including a description of the nature of such problems;
contain an inventory of any items described in clauses (i), (ii), and (iii) for which action has been taken and the result of such action;
contain an inventory of any items described in clauses (i), (ii), and (iii) for which action remains to be completed and the period during which each item has remained on such inventory;
contain an inventory of any items described in clauses (i), (ii), and (iii) for which no action has been taken, the period during which each item has remained on such inventory and the reasons for the inaction;
identify any Flood Insurance Assistance Recommendation which was not responded to by the Director in a timely manner or was not followed, as specified under subsection (i);
contain recommendations for such administrative and legislative action as may be appropriate to resolve problems encountered by such insureds;
identify areas of the law or regulations relating to the national flood insurance program that impose significant compliance burdens on such insureds or the Federal Emergency Management Agency, including specific recommendations for remedying these problems;
identify the most litigated issues for each category of such insureds, including recommendations for mitigating such disputes;
identify ways to promote the economy, efficiency, and effectiveness in the administration of the national flood insurance program;
identify fraud and abuse in the national flood insurance program; and
include such other information as the National Flood Insurance Advocate may deem advisable.
Direct submission of report
Each report required under this paragraph shall be provided directly to the committees identified in subparagraph (A) without any prior review or comment from the Director, the Secretary of Homeland Security, or any other officer or employee of the Federal Emergency Management Agency or the Department of Homeland Security, or the Office of Management and Budget.
Information and assistance from other agencies
In general
Upon request of the National Flood Insurance Advocate for information or assistance under this section, the head of any Federal agency shall, insofar as is practicable and not in contravention of any statutory restriction or regulation of the Federal agency from which the information is requested, furnish to the National Flood Insurance Advocate, or to an authorized designee of the National Flood Insurance Advocate, such information or assistance.
Refusal to comply
Whenever information or assistance requested under this subsection is, in the judgment of the National Flood Insurance Advocate, unreasonably refused or not provided, the National Flood Insurance Advocate shall report the circumstances to the Director without delay.
Compliance with GAO standards
In carrying out the responsibilities established under this section, the National Flood Insurance Advocate shall—
comply with standards established by the Comptroller General of the United States for audits of Federal establishments, organizations, programs, activities, and functions;
establish guidelines for determining when it shall be appropriate to use non-Federal auditors;
take appropriate steps to assure that any work performed by non-Federal auditors complies with the standards established by the Comptroller General as described in paragraph (1); and
take the necessary steps to minimize the publication of proprietary and trade secrets information.
Personnel actions
In general
The National Flood Insurance Advocate shall have the responsibility and authority to—
appoint regional flood insurance advocates in a manner that will provide appropriate coverage based upon regional flood insurance program participation; and
hire, evaluate, and take personnel actions (including dismissal) with respect to any employee of any regional office of a flood insurance advocate described in subparagraph (A).
Consultation
The National Flood Insurance Advocate may consult with the appropriate supervisory personnel of the Federal Emergency Management Agency in carrying out the National Flood Insurance Advocate’s responsibilities under this subsection.
Operation of regional offices
In general
Each regional flood insurance advocate appointed pursuant to subsection (d)—
shall report to the National Flood Insurance Advocate or delegate thereof;
may consult with the appropriate supervisory personnel of the Federal Emergency Management Agency regarding the daily operation of the regional office of the flood insurance advocate;
shall, at the initial meeting with any insured under the national flood insurance program seeking the assistance of a regional office of the flood insurance advocate, notify such insured that the flood insurance advocate offices operate independently of any other Federal Emergency Management Agency office and report directly to Congress through the National Flood Insurance Advocate; and
may, at the flood insurance advocate’s discretion, not disclose to the Director contact with, or information provided by, such insured.
Maintenance of independent communications
Each regional office of the flood insurance advocate shall maintain a separate phone, facsimile, and other electronic communication access.
Flood Insurance Assistance recommendations
Authority to issue
Upon application filed by a qualified insured with the Office of the Flood Insurance Advocate (in such form, manner, and at such time as the Director shall by regulation prescribe), the National Flood Insurance Advocate may issue a Flood Insurance Assistance Recommendation, if the Advocate finds that the qualified insured is suffering a significant hardship, such as a significant delay in resolving claims where the insured is incurring significant costs as a result of such delay, or where the insured is at risk of adverse action, including the loss of property, as a result of the manner in which the flood insurance laws are being administered by the Director.
Terms of a flood insurance assistance recommendation
The terms of a Flood Insurance Assistance Recommendation may recommend to the Director that the Director, within a specified time period, cease any action, take any action as permitted by law, or refrain from taking any action, including the payment of claims, with respect to the qualified insured under any other provision of law which is specifically described by the National Flood Insurance Advocate in such recommendation.
Director response
Not later than 15 days after the receipt of any Flood Insurance Assistance Recommendation under this subsection, the Director shall respond in writing as to—
whether such recommendation was followed;
why such recommendation was or was not followed; and
what, if any, additional actions were taken by the Director to prevent the hardship indicated in such recommendation.
Responsibilities of Director
The Director shall establish procedures requiring a formal response consistent with the requirements of paragraph (3) to all recommendations submitted to the Director by the National Flood Insurance Advocate under this subsection.
Reporting of potential criminal violations
In carrying out the duties and responsibilities established under this section, the National Flood Insurance Advocate shall report expeditiously to the Attorney General whenever the National Flood Insurance Advocate has reasonable grounds to believe there has been a violation of Federal criminal law.
Coordination
With other Federal agencies
In carrying out the duties and responsibilities established under this section, the National Flood Insurance Advocate—
shall give particular regard to the activities of the Inspector General of the Department of Homeland Security with a view toward avoiding duplication and insuring effective coordination and cooperation; and
may participate, upon request of the Inspector General of the Department of Homeland Security, in any audit or investigation conducted by the Inspector General.
With State regulators
In carrying out any investigation or audit under this section, the National Flood Insurance Advocate shall coordinate its activities and efforts with any State insurance authority that is concurrently undertaking a similar or related investigation or audit.
Avoidance of redundancies in the resolution of problems
In providing any assistance to a policyholder pursuant to paragraphs (1) and (2) of subsection (b), the National Flood Insurance Advocate shall consult with the Director to eliminate, avoid, or reduce any redundancies in actions that may arise as a result of the actions of the National Flood Insurance Advocate and the claims appeals process described under section 62.20 of title 44, Code of Federal Regulations.
Authority of the director To levy penalties
The Director and the Advocate shall establish procedures to take appropriate action against an insurance company, including monetary penalties and removal or suspension from the program, when a company refuses to cooperate with an investigation or audit under this section or where a finding has been made of improper conduct.
Definitions
For purposes of this subsection:
Associated entity
The term associated entity means any person, corporation, or other legal entity that contracts with the Director or an insurance company to provide adjustment services, benefits calculation services, claims services, processing services, or record keeping services in connection with standard flood insurance policies made available under the national flood insurance program.
Insurance company
The term insurance company refers to any property and casualty insurance company that is authorized by the Director to participate in the Write Your Own program under the national flood insurance program.
National Flood Insurance Advocate
The term National Flood Insurance Advocate includes any designee of the National Flood Insurance Advocate.
Qualified insured
The term qualified insured means an insured under coverage provided under the national flood insurance program under this title.
Funding
Pursuant to section 1310(a)(8), the Director may use amounts from the National Flood Insurance Fund to fund the activities of the Office of the Flood Advocate in each of fiscal years 2009 through 2014, except that the amount so used in each such fiscal year may not exceed $5,000,000 and shall remain available until expended. Notwithstanding any other provision of this title, amounts made available pursuant to this subsection shall not be subject to offsetting collections through premium rates for flood insurance coverage under this title.
.
Studies and Reports
Report on expanding the National Flood Insurance Program
Not later than 1 year after the date of the enactment of this title, the Comptroller General of the United States shall conduct a study and submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, on—
the number of flood insurance policy holders currently insuring—
a residential structure up to the maximum available coverage amount, as established in section 61.6 of title 44, Code of Federal Regulations, of—
$250,000 for the structure; and
$100,000 for the contents of such structure; or
a commercial structure up to the maximum available coverage amount, as established in section 61.6 of title 44, Code of Federal Regulations, of $500,000;
the increased losses the National Flood Insurance Program would have sustained during the 2004 and 2005 hurricane season if the National Flood Insurance Program had insured all policyholders up to the maximum conforming loan limit for fiscal year 2006 of $417,000, as established under section 302(b)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2));
the availability in the private marketplace of flood insurance coverage in amounts that exceed the current limits of coverage amounts established in section 61.6 of title 44, Code of Federal Regulations; and
what effect, if any—
raising the current limits of coverage amounts established in section 61.6 of title 44, Code of Federal Regulations, would have on the ability of private insurers to continue providing flood insurance coverage; and
reducing the current limits of coverage amounts established in section 61.6 of title 44, Code of Federal Regulations, would have on the ability of private insurers to provide sufficient flood insurance coverage to effectively replace the current level of flood insurance coverage being provided under the National Flood Insurance Program.
Report of the Director on activities under the National Flood Insurance Program
In general
The Director shall, on an annual basis, submit a full report on the operations, activities, budget, receipts, and expenditures of the National Flood Insurance Program for the preceding 12-month period to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.
Timing
Each report required under paragraph (1) shall be submitted to the committees described in paragraph (1) not later than 3 months following the end of each fiscal year.
Contents
Each report required under paragraph (1) shall include—
the current financial condition and income statement of the National Flood Insurance Fund established under section 1310 of the National Flood Insurance Act of 1968 (42 U.S.C. 4017), including—
premiums paid into such Fund;
policy claims against such Fund; and
expenses in administering such Fund;
the number and face value of all policies issued under the National Flood Insurance Program that are in force;
a description and summary of the losses attributable to repetitive loss structures;
a description and summary of all losses incurred by the National Flood Insurance Program due to—
hurricane related damage; and
nonhurricane related damage;
the amounts made available by the Director for mitigation assistance under section 1366(e)(5) of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c(e)(5)) for the purchase of properties substantially damaged by flood for that fiscal year, and the actual number of flood damaged properties purchased and the total cost expended to purchase such properties;
the estimate of the Director as to the average historical loss year, and the basis for that estimate;
the estimate of the Director as to the maximum amount of claims that the National Flood Insurance Program would have to expend in the event of a catastrophic year;
the average—
amount of insurance carried per flood insurance policy;
premium per flood insurance policy; and
loss per flood insurance policy; and
the number of claims involving damages in excess of the maximum amount of flood insurance available under the National Flood Insurance Program and the sum of the amount of all damages in excess of such amount.
GAO study on pre-FIRM structures
Not later than 1 year after the date of the enactment of this title, the Comptroller General of the United States shall conduct a study and submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, on the—
composition of the remaining pre-FIRM structures that are explicitly receiving discounted premium rates under section 1307 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104), including the historical basis for the receipt of such subsidy and whether such subsidy has outlasted its purpose;
number and fair market value of such structures;
respective income level of each owner of such structure;
number of times each such structure has been sold since 1968, including specific dates, sales price, and any other information the Secretary determines appropriate;
total losses incurred by such structures since the establishment of the National Flood Insurance Program compared to the total losses incurred by all structures that are charged a nondiscounted premium rate;
total cost of foregone premiums since the establishment of the National Flood Insurance Program, as a result of the subsidies provided to such structures;
annual cost to the taxpayer, as a result of the subsidies provided to such structures;
the premium income collected and the losses incurred by the National Flood Insurance Program as a result of such explicitly subsidized structures compared to the premium income collected and the losses incurred by such Program as result of structures that are charged a nondiscounted premium rate, on a State-by-State basis; and
the most efficient way to eliminate the subsidy to such structures.
GAO review of FEMA contractors
The Comptroller General of the United States, in conjunction with the Department of Homeland Security's Inspectors general Office, shall—
conduct a review of the 3 largest contractors the Director uses in administering the National Flood Insurance Program; and
not later than 18 months after the date of enactment of this title, submit a report on the findings of such review to the Director, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives.
Feasibility study on private reinsurance
Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall conduct and submit a report to Congress on—
the feasibility of requiring the Director, as part of carrying out the responsibilities of the Director under the National Flood Insurance Program, to purchase private reinsurance or retrocessional coverage, in addition to any such reinsurance coverage required under section 1335 of the National Flood Insurance Act of 1968 (42 U.S.C. 4055), to underlying primary private insurers for losses arising due to flood insurance coverage provided by such insurers;
the feasibility of repealing the reinsurance requirement under such section 1335, and requiring the Director, as part of carrying out the responsibilities of the Director under the National Flood Insurance Program, to purchase private reinsurance or retrocessional coverage to underlying primary private insurers for losses arising due to flood insurance coverage provided by such insurer; and
the estimated total savings to the taxpayer of taking each such action described in paragraph (1) or (2).
Policy disclosures
In general
Notwithstanding any other provision of law, in addition to any other disclosures that may be required, each policy under the National Flood Insurance Program shall state all conditions, exclusions, and other limitations pertaining to coverage under the subject policy, regardless of the underlying insurance product, in plain English, in boldface type, and in a font size that is twice the size of the text of the body of the policy.
Violations
Any person that violates the requirements of this section shall be subject to a fine of not more than $50,000 at the discretion of the Director.
Report on inclusion of building codes in floodplain management criteria
Not later than 6 months after the date of the enactment of this Act, the Director of the Federal Emergency Management Agency shall conduct a study and submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate regarding the impact, effectiveness, and feasibility of amending section 1361 of the National Flood Insurance Act of 1968 (42 U.S.C. 4102) to include widely used and nationally recognized building codes as part of the floodplain management criteria developed under such section, and shall determine—
the regulatory, financial, and economic impacts of such a building code requirement on homeowners, States and local communities, local land use policies, and the Federal Emergency Management Agency;
the resources required of State and local communities to administer and enforce such a building code requirement;
the effectiveness of such a building code requirement in reducing flood-related damage to buildings and contents;
the impact of such a building code requirement on the actuarial soundness of the National Flood Insurance Program;
the effectiveness of nationally recognized codes in allowing innovative materials and systems for flood-resistant construction; and
the feasibility and effectiveness of providing an incentive in lower premium rates for flood insurance coverage under such Act for structures meeting whichever of such widely used and nationally recognized building code or any applicable local building code provides greater protection from flood damage.
Commission on Natural Catastrophe Risk Management and Insurance
Short title
This title may be cited
as the Commission on Natural Catastrophe Risk Management and Insurance
Act of 2008
.
Findings
Congress finds that—
Hurricanes Katrina, Rita, and Wilma, which struck the United States in 2005, caused, by some estimates, in excess of $200,000,000,000 in total economic losses;
many meteorologists predict that the United States is in a period of increased hurricane activity;
the Federal Government and State governments have provided billions of dollars to pay for losses from natural catastrophes, including hurricanes, earthquakes, volcanic eruptions, tsunamis, tornados, flooding, wildfires, droughts, and other natural catastrophes;
many Americans are finding it increasingly difficult to obtain and afford property and casualty insurance coverage;
some insurers are not renewing insurance policies, are excluding certain risks, such as wind damage, and are increasing rates and deductibles in some markets;
the inability of property and business owners in vulnerable areas to obtain and afford property and casualty insurance coverage endangers the national economy and public health and safety;
almost every State in the United States is at risk of a natural catastrophe, including hurricanes, earthquakes, volcanic eruptions, tsunamis, tornados, flooding, wildfires, droughts, and other natural catastrophes;
building codes and land use regulations play an indispensable role in managing catastrophe risks, by preventing building in high risk areas and ensuring that appropriate mitigation efforts are completed where building has taken place;
several proposals have been introduced in Congress to address the affordability and availability of natural catastrophe insurance across the United States, but there is no consensus on what, if any, role the Federal Government should play; and
an efficient and effective approach to assessing natural catastrophe risk management and insurance is to establish a nonpartisan commission to study the management of natural catastrophe risk, and to require such commission to timely report to Congress on its findings.
Establishment
There is established a nonpartisan
Commission on Natural Catastrophe Risk Management and Insurance (in this title
referred to as the Commission
).
Membership
Appointment
The Commission shall be composed of 16 members, of whom—
2 members shall be appointed by the majority leader of the Senate;
2 members shall be appointed by the minority leader of the Senate;
2 members shall be appointed by the Speaker of the House of Representatives;
2 members shall be appointed by the minority leader of the House of Representatives;
2 members shall be appointed by the Chairman of the Committee on Banking, Housing, and Urban Affairs of the Senate;
2 members shall be appointed by the Ranking Member of the Committee on Banking, Housing, and Urban Affairs of the Senate;
2 members shall be appointed by the Chairman of the Committee on Financial Services of the House of Representatives; and
2 members shall be appointed by the Ranking Member of the Committee on Financial Services of the House of Representatives.
Qualification of members
In general
Members of the Commission shall be appointed under subsection (a) from among persons who—
have expertise in insurance, reinsurance, insurance regulation, policyholder concerns, emergency management, risk management, public finance, financial markets, actuarial analysis, flood mapping and planning, structural engineering, building standards, land use planning, natural catastrophes, meteorology, seismology, environmental issues, or other pertinent qualifications or experience; and
are not officers or employees of the United States Government or of any State government.
Diversity
In making appointments to the Commission—
every effort shall be made to ensure that the members are representative of a broad cross section of perspectives within the United States; and
each member of Congress described in subsection (a) shall appoint not more than 1 person from any single primary area of expertise described in paragraph (1)(A) of this subsection.
Period of appointment
In general
Each member of the Commission shall be appointed for the duration of the Commission.
Vacancies
A vacancy on the Commission shall not affect its powers, but shall be filled in the same manner as the original appointment.
Quorum
Majority
A majority of the members of the Commission shall constitute a quorum, but a lesser number, as determined by the Commission, may hold hearings.
Approval actions
All recommendations and reports of the Commission required by this title shall be approved only by a majority vote of all of the members of the Commission.
Chairperson
The
Commission shall, by majority vote of all of the members, select 1 member to
serve as the Chairperson of the Commission (in this title referred to as the
Chairperson
).
Meetings
The Commission shall meet at the call of its Chairperson or a majority of the members.
Duties of the Commission
The Commission shall examine the risks posed to the United States by natural catastrophes, and means for mitigating those risks and for paying for losses caused by natural catastrophes, including assessing—
the condition of the property and casualty insurance and reinsurance markets prior to and in the aftermath of Hurricanes Katrina, Rita, and Wilma in 2005, and the 4 major hurricanes that struck the United States in 2004;
the current condition of, as well as the outlook for, the availability and affordability of insurance in all regions of the country;
the current ability of States, communities, and individuals to mitigate their natural catastrophe risks, including the affordability and feasibility of such activities;
the ongoing exposure of the United States to natural catastrophes, including hurricanes, earthquakes, volcanic eruptions, tsunamis, tornados, flooding, wildfires, droughts, and other natural catastrophes;
the catastrophic insurance and reinsurance markets and the relevant practices in providing insurance protection to different sectors of the American population;
implementation of a catastrophic insurance system that can resolve key obstacles currently impeding broader implementation of catastrophic risk management and financing with insurance;
the financial feasibility and sustainability of a national, regional, or other pooling mechanism designed to provide adequate insurance coverage and increased underwriting capacity to insurers and reinsurers, including private-public partnerships to increase insurance capacity in constrained markets;
methods to promote public insurance policies to reduce losses caused by natural catastrophes in the uninsured sectors of the American population;
approaches for implementing a public or private insurance scheme for low-income communities, in order to promote risk reduction and insurance coverage in such communities;
the impact of Federal and State laws, regulations, and policies (including rate regulation, market access requirements, reinsurance regulations, accounting and tax policies, State residual markets, and State catastrophe funds) on—
the affordability and availability of catastrophe insurance;
the capacity of the private insurance market to cover losses inflicted by natural catastrophes;
the commercial and residential development of high-risk areas; and
the costs of natural catastrophes to Federal and State taxpayers;
the present and long-term financial condition of State residual markets and catastrophe funds in high-risk regions, including the likelihood of insolvency following a natural catastrophe, the concentration of risks within such funds, the reliance on post-event assessments and State funding, and the adequacy of rates;
the role that innovation in financial services could play in improving the affordability and availability of natural catastrophe insurance, specifically addressing measures that would foster the development of financial products designed to cover natural catastrophe risk, such as risked-linked securities;
the need for strengthened land use regulations and building codes in States at high risk for natural catastrophes, and methods to strengthen the risk assessment and enforcement of structural mitigation and vulnerability reduction measures, such as zoning and building code compliance;
the benefits and costs of proposed Federal natural catastrophe insurance programs (including the Federal Government providing reinsurance to State catastrophe funds, private insurers, or other entities), specifically addressing the costs to taxpayers, tax equity considerations, and the record of other government insurance programs (particularly with regard to charging actuarially sound prices);
the ability of the United States private insurance market—
to cover insured losses caused by natural catastrophes, including an estimate of the maximum amount of insured losses that could be sustained during a single year and the probability of natural catastrophes occurring in a single year that would inflict more insured losses than the United States insurance and reinsurance markets could sustain; and
to recover after covering substantial insured losses caused by natural catastrophes;
the impact that demographic trends could have on the amount of insured losses inflicted by future natural catastrophes;
the appropriate role, if any, for the Federal Government in stabilizing the property and casualty insurance and reinsurance markets; and
the role of the Federal, State, and local governments in providing incentives for feasible risk mitigation efforts.
Report
In general
Not later than 9 months after the date of enactment of this title, the Commission shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a final report containing—
a detailed statement of the findings and assessments conducted by the Commission pursuant to section 205; and
any recommendations for legislative, regulatory, administrative, or other actions at the Federal, State, or local levels that the Commission considers appropriate, in accordance with the requirements of section 205.
Extension of time
The Commission may request Congress to extend the period of time for the submission of the report required under subsection (a) for an additional 3 months.
Powers of the Commission
Meetings; hearings
The Commission may hold such hearings, sit and act at such times and places, take such testimony, and receive such evidence as the Commission considers necessary to carry out the purposes of this title. Members may attend meetings of the Commission and vote in person, via telephone conference, or via video conference.
Authority of members or agents of the Commission
Any member or agent of the Commission may, if authorized by the Commission, take any action which the Commission is authorized to take by this title.
Obtaining official data
Authority
Notwithstanding any provision of section 552a of title 5, United States Code, the Commission may secure directly from any department or agency of the United States any information necessary to enable the Commission to carry out this title.
Procedure
Upon request of the Chairperson, the head of such department or agency shall furnish to the Commission the information requested.
Postal services
The Commission may use the United States mails in the same manner and under the same conditions as other departments and agencies of the Federal Government.
Administrative support services
Upon the request of the Commission, the Administrator of General Services shall provide to the Commission, on a reimbursable basis, any administrative support services necessary for the Commission to carry out its responsibilities under this title.
Acceptance of gifts
The Commission may accept, hold, administer, and utilize gifts, donations, and bequests of property, both real and personal, for the purposes of aiding or facilitating the work of the Commission. The Commission shall issue internal guidelines governing the receipt of donations of services or property.
Volunteer services
Notwithstanding the provisions of section 1342 of title 31, United States Code, the Commission may accept and utilize the services of volunteers serving without compensation. The Commission may reimburse such volunteers for local travel and office supplies, and for other travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code.
Federal Property and Administrative Services Act of 1949
Subject to the Federal Property and Administrative Services Act of 1949, the Commission may enter into contracts with Federal and State agencies, private firms, institutions, and individuals for the conduct of activities necessary to the discharge of its duties and responsibilities.
Limitation on contracts
A contract or other legal agreement entered into by the Commission may not extend beyond the date of the termination of the Commission.
Commission personnel matters
Travel expenses
The members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Commission.
Subcommittees
The Commission may establish subcommittees and appoint members of the Commission to such subcommittees as the Commission considers appropriate.
Staff
Subject to such policies as the Commission may prescribe, the Chairperson may appoint and fix the pay of such additional personnel as the Chairperson considers appropriate to carry out the duties of the Commission. The Commission shall confirm the appointment of the executive director by majority vote of all of the members of the Commission.
Applicability of certain civil service laws
Staff of the Commission may be—
appointed without regard to the provisions of title 5, United States Code, governing appointments in the competitive service; and
paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of that title relating to classification and General Schedule pay rates, except that an individual so appointed may not receive pay in excess of the annual rate of basic pay prescribed for GS–15 of the General Schedule under section 5332 of that title.
Experts and consultants
In carrying out its objectives, the Commission may procure temporary and intermittent services of consultants and experts under section 3109(b) of title 5, United States Code, at rates for individuals which do not exceed the daily equivalent of the annual rate of basic pay prescribed for GS–15 of the General Schedule under section 5332 of that title.
Detail of government employees
Upon request of the Chairperson, any Federal Government employee may be detailed to the Commission to assist in carrying out the duties of the Commission—
on a reimbursable basis; and
such detail shall be without interruption or loss of civil service status or privilege.
Termination
The Commission shall terminate 90 days after the date on which the Commission submits its report under section 206.
Authorization of appropriations
There are authorized to be appropriated to the Commission, such sums as may be necessary to carry out this title, to remain available until expended.
Miscellaneous
Big Sioux River and Skunk Creek, Sioux Falls, South Dakota
The project for flood control, Big Sioux River and Skunk Creek, Sioux Falls, South Dakota, authorized by section 101(a)(28) of the Water Resources Development Act of 1996 (110 Stat. 3666), is modified to authorize the Secretary to reimburse the non-Federal interest for funds advanced by the non-Federal interest for the Federal share of the project, only if additional Federal funds are appropriated for that purpose.
Suspension of petroleum acquisition for Strategic Petroleum Reserve
In general
Except as provided in subsection (b) and notwithstanding any other provision of law, during the period beginning on the date of enactment of this Act and ending on December 31, 2008—
the Secretary of the Interior shall suspend acquisition of petroleum for the Strategic Petroleum Reserve through the royalty-in-kind program; and
the Secretary of Energy shall suspend acquisition of petroleum for the Strategic Petroleum Reserve through any other acquisition method.
Resumption
Not earlier than 30 days after the date on which the President notifies Congress that the President has determined that the weighted average price of petroleum in the United States for the most recent 90-day period is $75 or less per barrel—
the Secretary of the Interior may resume acquisition of petroleum for the Strategic Petroleum Reserve through the royalty-in-kind program; and
the Secretary of Energy may resume acquisition of petroleum for the Strategic Petroleum Reserve through any other acquisition method.
Existing contracts
In the case of any oil scheduled to be delivered to the Strategic Petroleum Reserve pursuant to a contract entered into by the Secretary of Energy prior to, and in effect on, the date of enactment of this Act, the Secretary shall, to the maximum extent practicable, negotiate a deferral of the delivery of the oil for a period of not less than 1 year, in accordance with procedures of the Department of Energy in effect on the date of enactment of this Act for deferrals of oil.
Secretary